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Trump wants US to default on its debt

TN05
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5/6/2016 6:33:28 PM
Posted: 7 months ago
Remember how some of us #NeverTrump were joking his plan to solve the debt would be to put us through bankruptcy? Well...

http://talkingpointsmemo.com...

"So many stories in presidential politics, in all politics, are more sound and fury than substance. This one isn't. It's hard to overstate how big a deal it is. Donald Trump caught a lot of grief during the primaries for putting several of his companies through bankruptcies during his career. He's also made a point of arguing that he'd bring his brand of "deal-making" to the presidency. It now seems like both of those things may have been way more significant than maybe anyone realized.

On CNBC this morning Trump suggested that one strategy he'll use for reducing the national debt is having bond holders accept "haircuts". To be clear what that means, he'll try to get people who own US Treasury bonds and are owned X to accept X/2, or some reduced amount of what they are owed.

That's called defaulting on a debt obligation.

In other words, he wants to put the US through something like bankruptcy. Now, to be clear, in the world of business this is not at all uncommon. In a bankruptcy proceeding almost everyone takes a haircut. Many lose everything. You were owed $7 million and you have to accept $2 million. It often happens in simple business negotiations too. Things aren't going great. Debt has to be restructured to help the company survive. A creditor thinks they might lose everything so they'll accept 50 cents on the dollar.

So all good, except the United States is not a struggling casino. It's a sovereign nation with sovereign debt.

It is not too much to say that centuries of American prosperity have been undergirded by the "full faith and credit of the United States." In other words, the US always pays its debts in full and on time. Indeed, it's black letter text in the US constitution that the country's debt can never even be questioned. Defaulting on the national debt would clearly be unconstitutional.

That's the constitution part, which is a weighty matter. But the entire architecture of the global economy and the United States place in it rests on the certainty and basic risklessness of US government debt obligations. It's as simple as that. (This has actually allowed the US to in effect have people pay the Treasury to hold on to their money since 2008.) Introducing the idea that the US might pay back only a portion of the returns on Treasury bonds would basically disrupt the entire global economy, have massive and traumatic knock-on effects on the US economy and its ability to service its own debt. It would be catastrophic, an entirely self-inflicted wound.

To be clear, this will never happen. But the fact that Trump is proposing it shows that when it comes to macro-economics and global economics Trump is a huge ignoramus who shouldn't be allowed anywhere near the Treasury. It's amazing suggestion. Not just stupid but someone who simply knows nothing about how the economy works."
user13579
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5/6/2016 6:36:13 PM
Posted: 7 months ago
That's brilliant actually.
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
TN05
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5/6/2016 6:37:25 PM
Posted: 7 months ago
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.
user13579
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5/6/2016 6:38:39 PM
Posted: 7 months ago
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
TN05
Posts: 4,492
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5/6/2016 6:47:25 PM
Posted: 7 months ago
At 5/6/2016 6:38:39 PM, user13579 wrote:
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Actually, they can. They can stop buying Treasury bonds, and also go to the pound or yen instead of the dollar as the reserve currency. Interest rates skyrocket. Nobody buys our debt, which means we either have to drastically cut spending or drastically raise taxes (neither of which Trump supports - he wants to raise spending and reduce taxes, supposedly). Any pensions backed by the government (which fund the retirement of our workers) vanish. US banks with investment in US debt would go bankrupt as well, taking their money with them, which would have massive repercussions both domestically (lost life savings and the government having no money to repay it through FDIC) and internationally. Also, any country that owns debt - including allies like Japan and Taiwan - would suffer economic collapse as well. That's not smart - that's dumb. It would be so bad, it would make Jefferson's Embargo Act and the Smoot-Hawley tariff look like the best decisions ever.
user13579
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5/6/2016 6:49:13 PM
Posted: 7 months ago
At 5/6/2016 6:47:25 PM, TN05 wrote:
At 5/6/2016 6:38:39 PM, user13579 wrote:
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Actually, they can. They can stop buying Treasury bonds, and also go to the pound or yen instead of the dollar as the reserve currency. Interest rates skyrocket. Nobody buys our debt, which means we either have to drastically cut spending or drastically raise taxes (neither of which Trump supports - he wants to raise spending and reduce taxes, supposedly). Any pensions backed by the government (which fund the retirement of our workers) vanish. US banks with investment in US debt would go bankrupt as well, taking their money with them, which would have massive repercussions both domestically (lost life savings and the government having no money to repay it through FDIC) and internationally. Also, any country that owns debt - including allies like Japan and Taiwan - would suffer economic collapse as well. That's not smart - that's dumb. It would be so bad, it would make Jefferson's Embargo Act and the Smoot-Hawley tariff look like the best decisions ever.

Actually there would be lower taxes, because most taxes are used to pay interest on the debt!
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
TN05
Posts: 4,492
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5/6/2016 6:55:03 PM
Posted: 7 months ago
At 5/6/2016 6:49:13 PM, user13579 wrote:
At 5/6/2016 6:47:25 PM, TN05 wrote:
At 5/6/2016 6:38:39 PM, user13579 wrote:
Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Actually, they can. They can stop buying Treasury bonds, and also go to the pound or yen instead of the dollar as the reserve currency. Interest rates skyrocket. Nobody buys our debt, which means we either have to drastically cut spending or drastically raise taxes (neither of which Trump supports - he wants to raise spending and reduce taxes, supposedly). Any pensions backed by the government (which fund the retirement of our workers) vanish. US banks with investment in US debt would go bankrupt as well, taking their money with them, which would have massive repercussions both domestically (lost life savings and the government having no money to repay it through FDIC) and internationally. Also, any country that owns debt - including allies like Japan and Taiwan - would suffer economic collapse as well. That's not smart - that's dumb. It would be so bad, it would make Jefferson's Embargo Act and the Smoot-Hawley tariff look like the best decisions ever.

Actually there would be lower taxes, because most taxes are used to pay interest on the debt!

What the fvck are you talking about
user13579
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5/6/2016 6:57:56 PM
Posted: 7 months ago
What am I talking about? The US has to pay interest on the debt. By raising taxes! If the debt was eliminated, there would actually be lower taxes. What's the debt right now? $20T? So how much do you think the annual interest on that is?
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
TN05
Posts: 4,492
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5/6/2016 7:17:13 PM
Posted: 7 months ago
At 5/6/2016 6:57:56 PM, user13579 wrote:
What am I talking about? The US has to pay interest on the debt. By raising taxes! If the debt was eliminated, there would actually be lower taxes. What's the debt right now? $20T? So how much do you think the annual interest on that is?

I don't think you understand how debt works.
user13579
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5/6/2016 7:21:18 PM
Posted: 7 months ago
At 5/6/2016 7:17:13 PM, TN05 wrote:
At 5/6/2016 6:57:56 PM, user13579 wrote:
What am I talking about? The US has to pay interest on the debt. By raising taxes! If the debt was eliminated, there would actually be lower taxes. What's the debt right now? $20T? So how much do you think the annual interest on that is?

I don't think you understand how debt works.

You don't. The only way the government can pay the debt off is by raising taxes or by printing money or by increasing the debt. Or the government can default and just not pay it.
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
user13579
Posts: 822
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5/6/2016 7:26:10 PM
Posted: 7 months ago
Somehow, you think the government is going to be able to keep borrowing from someone else to pay the previous borrower off. That pyramid scheme is not going to work forever.
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
slo1
Posts: 4,353
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5/6/2016 7:28:04 PM
Posted: 7 months ago
At 5/6/2016 6:33:28 PM, TN05 wrote:
Remember how some of us #NeverTrump were joking his plan to solve the debt would be to put us through bankruptcy? Well...

http://talkingpointsmemo.com...

"So many stories in presidential politics, in all politics, are more sound and fury than substance. This one isn't. It's hard to overstate how big a deal it is. Donald Trump caught a lot of grief during the primaries for putting several of his companies through bankruptcies during his career. He's also made a point of arguing that he'd bring his brand of "deal-making" to the presidency. It now seems like both of those things may have been way more significant than maybe anyone realized.

On CNBC this morning Trump suggested that one strategy he'll use for reducing the national debt is having bond holders accept "haircuts". To be clear what that means, he'll try to get people who own US Treasury bonds and are owned X to accept X/2, or some reduced amount of what they are owed.

That's called defaulting on a debt obligation.

In other words, he wants to put the US through something like bankruptcy. Now, to be clear, in the world of business this is not at all uncommon. In a bankruptcy proceeding almost everyone takes a haircut. Many lose everything. You were owed $7 million and you have to accept $2 million. It often happens in simple business negotiations too. Things aren't going great. Debt has to be restructured to help the company survive. A creditor thinks they might lose everything so they'll accept 50 cents on the dollar.

So all good, except the United States is not a struggling casino. It's a sovereign nation with sovereign debt.

It is not too much to say that centuries of American prosperity have been undergirded by the "full faith and credit of the United States." In other words, the US always pays its debts in full and on time. Indeed, it's black letter text in the US constitution that the country's debt can never even be questioned. Defaulting on the national debt would clearly be unconstitutional.

That's the constitution part, which is a weighty matter. But the entire architecture of the global economy and the United States place in it rests on the certainty and basic risklessness of US government debt obligations. It's as simple as that. (This has actually allowed the US to in effect have people pay the Treasury to hold on to their money since 2008.) Introducing the idea that the US might pay back only a portion of the returns on Treasury bonds would basically disrupt the entire global economy, have massive and traumatic knock-on effects on the US economy and its ability to service its own debt. It would be catastrophic, an entirely self-inflicted wound.

To be clear, this will never happen. But the fact that Trump is proposing it shows that when it comes to macro-economics and global economics Trump is a huge ignoramus who shouldn't be allowed anywhere near the Treasury. It's amazing suggestion. Not just stupid but someone who simply knows nothing about how the economy works."

Donald Trump says many things which he can never do as President. IE: get Mexico to pay for the wall. This falls in the scary area like the idea of executing the family members of terrorists.

He would never convince the holders of treasuries to take a haircut unless unless there is the threat of a larger default. That will never happen in the next 10 years and a President can't just default on treasuries just because he wants to without a decade plus worth of legal proceedings and the risk that the US will be forced to pay anyway.

The entire world in underpinned that US treasuries are the safest place to put money. With out that absolute there would be an entire shift of financials which could spur the dollar to lose its status as the currency the world runs on. Default on our debt has repercussions that span a couple generations.
slo1
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5/6/2016 7:30:00 PM
Posted: 7 months ago
At 5/6/2016 6:38:39 PM, user13579 wrote:
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Yes, they can stop buying treasuries, which makes future debt much more expensive. It could very well cost more money in increased interest payments and that does not include private business implications.
user13579
Posts: 822
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5/6/2016 7:33:22 PM
Posted: 7 months ago
At 5/6/2016 7:30:00 PM, slo1 wrote:
At 5/6/2016 6:38:39 PM, user13579 wrote:
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Yes, they can stop buying treasuries, which makes future debt much more expensive. It could very well cost more money in increased interest payments and that does not include private business implications.

Who cares. The government does not actually need debt if it lived within its means for once. Debt just means you have to raise taxes in the future anyway. It's not free money (unless you default on it). The government could actually live within its means right now without even changing tax rates just by defaulting on the debt!
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
Enji
Posts: 1,022
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5/6/2016 7:36:31 PM
Posted: 7 months ago
At 5/6/2016 6:49:13 PM, user13579 wrote:
At 5/6/2016 6:47:25 PM, TN05 wrote:
At 5/6/2016 6:38:39 PM, user13579 wrote:
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Actually, they can. They can stop buying Treasury bonds, and also go to the pound or yen instead of the dollar as the reserve currency. Interest rates skyrocket. Nobody buys our debt, which means we either have to drastically cut spending or drastically raise taxes (neither of which Trump supports - he wants to raise spending and reduce taxes, supposedly). Any pensions backed by the government (which fund the retirement of our workers) vanish. US banks with investment in US debt would go bankrupt as well, taking their money with them, which would have massive repercussions both domestically (lost life savings and the government having no money to repay it through FDIC) and internationally. Also, any country that owns debt - including allies like Japan and Taiwan - would suffer economic collapse as well. That's not smart - that's dumb. It would be so bad, it would make Jefferson's Embargo Act and the Smoot-Hawley tariff look like the best decisions ever.

Actually there would be lower taxes, because most taxes are used to pay interest on the debt!

Net interest payment is 6% of US federal spending, not most of it.
user13579
Posts: 822
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5/6/2016 7:38:48 PM
Posted: 7 months ago
At 5/6/2016 7:36:31 PM, Enji wrote:
At 5/6/2016 6:49:13 PM, user13579 wrote:
At 5/6/2016 6:47:25 PM, TN05 wrote:
At 5/6/2016 6:38:39 PM, user13579 wrote:
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Actually, they can. They can stop buying Treasury bonds, and also go to the pound or yen instead of the dollar as the reserve currency. Interest rates skyrocket. Nobody buys our debt, which means we either have to drastically cut spending or drastically raise taxes (neither of which Trump supports - he wants to raise spending and reduce taxes, supposedly). Any pensions backed by the government (which fund the retirement of our workers) vanish. US banks with investment in US debt would go bankrupt as well, taking their money with them, which would have massive repercussions both domestically (lost life savings and the government having no money to repay it through FDIC) and internationally. Also, any country that owns debt - including allies like Japan and Taiwan - would suffer economic collapse as well. That's not smart - that's dumb. It would be so bad, it would make Jefferson's Embargo Act and the Smoot-Hawley tariff look like the best decisions ever.

Actually there would be lower taxes, because most taxes are used to pay interest on the debt!

Net interest payment is 6% of US federal spending, not most of it.

Well, eventually somebody is going to have to raise taxes to pay off all that interest and interest on interest and interest on interest on interest etc. All everybody wants to do is borrow whatever they can now, and then blame the guy after them for raising taxes to pay off what was borrowed.
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
slo1
Posts: 4,353
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5/6/2016 7:44:03 PM
Posted: 7 months ago
At 5/6/2016 7:33:22 PM, user13579 wrote:
At 5/6/2016 7:30:00 PM, slo1 wrote:
At 5/6/2016 6:38:39 PM, user13579 wrote:
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Yes, they can stop buying treasuries, which makes future debt much more expensive. It could very well cost more money in increased interest payments and that does not include private business implications.

Who cares. The government does not actually need debt if it lived within its means for once. Debt just means you have to raise taxes in the future anyway. It's not free money (unless you default on it). The government could actually live within its means right now without even changing tax rates just by defaulting on the debt!

Not by Ronnie's and supply sider's take do you need to raise taxes. Not even Trump can balance the budget while increasing the military and maintaining Social Security, Medicaid, & Medicare, etc.

For all the people who fell for the promises of Barack Obama there are now many more falling for the promises of Donald Trump, which will mostly go unkempt.

Unless he finds some money up his arse, his budget proposal does nothing close to what he is portraying he can do. He can repatriate the money held overseas, is about it.
user13579
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5/6/2016 7:44:18 PM
Posted: 7 months ago
It's 6% of federal spending right now, because the government is not even keeping up with interest payments. The debt just keeps getting bigger.
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
user13579
Posts: 822
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5/6/2016 7:47:48 PM
Posted: 7 months ago
Yeah, maybe it isn't possible to just default right now. Thanks Obama.
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
YYW
Posts: 36,305
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5/6/2016 7:55:46 PM
Posted: 7 months ago
Negotiating reduced return rates is the exact opposite of defaulting. This entire post is silly.
Tsar of DDO
TBR
Posts: 9,991
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5/6/2016 8:57:23 PM
Posted: 7 months ago
At 5/6/2016 6:38:39 PM, user13579 wrote:
At 5/6/2016 6:37:25 PM, TN05 wrote:
At 5/6/2016 6:36:13 PM, user13579 wrote:
That's brilliant actually.

If you want to cause a global economic crisis, sure.

Right. Like there isn't one already.

That's brilliant. Just say we're not going to pay off our debt to foreign nations. And what are they going to do about it? Nothing. They can't do anything.

Moronic! Just like Trump supporters. How do you unwind what is foreign and what is domestic.
Greyparrot
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5/6/2016 9:48:31 PM
Posted: 7 months ago
At 5/6/2016 7:55:46 PM, YYW wrote:
Negotiating reduced return rates is the exact opposite of defaulting. This entire post is silly.

STOP COCKBLOCKING THE NARRATIVE!
slo1
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5/6/2016 10:04:05 PM
Posted: 7 months ago
At 5/6/2016 9:48:31 PM, Greyparrot wrote:
At 5/6/2016 7:55:46 PM, YYW wrote:
Negotiating reduced return rates is the exact opposite of defaulting. This entire post is silly.

STOP COCKBLOCKING THE NARRATIVE!

Sigh,

Yes, when ever you don't honor your debt per the terms set when issued is considered a default. For f's sake, stop being so obtuse and generally ornery
TN05
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5/7/2016 3:10:37 AM
Posted: 7 months ago
At 5/6/2016 7:55:46 PM, YYW wrote:
Negotiating reduced return rates is the exact opposite of defaulting. This entire post is silly.

Sovereign default: A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full. (https://en.wikipedia.org...)
Greyparrot
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5/7/2016 2:05:14 PM
Posted: 7 months ago
The credit ratings agencies, which grade the chances of investors getting back the money they have lent to a company or government, have said a missed payment on Tuesday by Greece would not be treated as a default. Neither does a failure to pay the IMF mean that other investors in Greek debt will lose out.

https://www.theguardian.com...
user13579
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5/7/2016 2:16:35 PM
Posted: 7 months ago
This is a very old report, but it basically said most taxes don't really pay for much besides the debt. I knew I read that somewhere.

https://en.wikipedia.org...
Science in a nutshell:
"Facts are neither true nor false. They simply are."
"All scientific knowledge is provisional. Even facts are provisional."
"We can be absolutely certain that we have a moon, we can be absolutely certain that water is made out of H2O, and we can be absolutely certain that the Earth is a sphere!"
"Scientific knowledge is a body of statements of varying degrees of certainty -- some most unsure, some nearly sure, none absolutely certain."
TrumpTriumph
Posts: 165
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5/7/2016 2:30:03 PM
Posted: 7 months ago
At 5/7/2016 3:10:37 AM, TN05 wrote:
At 5/6/2016 7:55:46 PM, YYW wrote:
Negotiating reduced return rates is the exact opposite of defaulting. This entire post is silly.

Sovereign default: A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full. (https://en.wikipedia.org...)

Fail reading comprehension is fail. How did you manage to graduate high school?

Negotiating reduced return rates decreases the amount of debt itself, thereby making it less likely that we'll have to default on it. What Trump is talking about is completely distinct from actually defaulting on the loan.

Just give up. Trump knows more about debt than you ever will.
#TrumpTriumph2016
TN05
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5/7/2016 2:37:32 PM
Posted: 7 months ago
At 5/7/2016 2:30:03 PM, TrumpTriumph wrote:
At 5/7/2016 3:10:37 AM, TN05 wrote:
At 5/6/2016 7:55:46 PM, YYW wrote:
Negotiating reduced return rates is the exact opposite of defaulting. This entire post is silly.

Sovereign default: A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full. (https://en.wikipedia.org...)

Fail reading comprehension is fail. How did you manage to graduate high school?

Negotiating reduced return rates decreases the amount of debt itself, thereby making it less likely that we'll have to default on it. What Trump is talking about is completely distinct from actually defaulting on the loan.

Except we have already guaranteed to pay in full. Refusing to pay in full is sovereign default and would lead to immediate and long-term consequences. Can you even read?

Just give up. Trump knows more about debt than you ever will.

I will admit, Trump has gone bankrupt four more times than I have. It makes sense that would be his plan.
TBR
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5/7/2016 3:34:56 PM
Posted: 7 months ago
At 5/7/2016 3:10:37 AM, TN05 wrote:
At 5/6/2016 7:55:46 PM, YYW wrote:
Negotiating reduced return rates is the exact opposite of defaulting. This entire post is silly.

Sovereign default: A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full. (https://en.wikipedia.org...)